Rabobank: U.S. Pork Industry Should Continue Growth

A new report from the RaboResearch Food and Agribusiness Group looks at the growth of the U.S. Pork industry and the factors that could influence continued growth.

Rabobank analysis shows the pork sector could grow 11 percent between 2017 and 2025. That growth will be supported by increasing production efficiency and adding additional processing capacity. These are the two most important factors in improving efficiencies for everyone in the supply chain. Sterling Liddell is a Global Data Analyst for the group. He says exports are a necessity for future pork expansion but they aren’t guaranteed. “Mexico continues to grow its sow inventory and slaughter plants, which means it’s only a matter of time before their domestic production grows,” Liddell said.

Over the long term, the U.S. sow herd is expected to decline by 6.3 percent from 2016 to 2025. The Rabobank report says the sow reduction is necessary in order to balance the increased production capacity gained from more pigs produced per sow and the 5.5 percent growth in carcass weight. As more pork comes into the market, the study authors say that will put pressure on the industry to increase its exports.